Which of the Following Non-Cash Employee Benefits Would Be Excluded

question 44

Multiple Choice

Which of the following non-cash employee benefits would be excluded from the taxable income of the employee? Unless indicated otherwise all benefits are provided on a non-discriminatory basis.

• A)Executives of Handyware receive a free automobile every 2 years.
• B)The top salesman for Genesis in each sales district receives a free two-week vacation in Hawaii.
• C)Carter, a flight attendant for Western Airlines, flew roundtrip from Houston to Dallas 45 times during the tax year to visit her boyfriend at no cost. Airline employees fly free on a space available basis.
• D)Mike receives a free apartment from his employer who owns hundreds of apartment complexes all over the country. Mike is the internal auditor for the apartment company. He has the option to live in a free apartment or receive additional compensation.
• E)All of the above non-cash benefits can be provided to employees on a tax-free basis.

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Definitions:

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